LocationsTropical forest countries take the lead to mobilize finance for climate action
June 23, 2025
A coalition of countries committed to conserving tropical forests, the Tropical Forest Forever Facility offers a new model of climate finance.
In a time marked by geopolitical tension and economic disruption, one constant remains: the climate crisis is deepening. The solutions are known, but the financing required continues to fall short – especially when it comes to our planet’s forests, which are crucial for tackling climate change.
Forests – particularly tropical ones – are not just carbon sinks. They are home to the majority of the world’s terrestrial biodiversity, the foundation of the livelihoods for nearly a billion people and the ancestral lands of Indigenous Peoples who have safeguarded them for generations. And yet, forests receive less than 4 percent of the international climate finance.
This gap in funding is not just an oversight – it is a missed opportunity. Forests could deliver at least 5 gigatons of CO₂-equivalent in reduced or sequestered emissions annually. That is a massive climate contribution left on the table. Tropical forest countries know this and are no longer waiting for the rest of the world to act.
Under the leadership of the Government of Brazil, the Tropical Forest Forever Facility (TFFF) offers a new model of climate finance – it is an ambitious and pragmatic instrument, long overdue. Unlike traditional donor-driven aid, the TFFF treats tropical forests as what they are: global environmental infrastructure that deserves recognition and reward. Water regulation, carbon storage, biodiversity – these services underpin our planetary stability and prosperity. The countries protecting them should be supported accordingly.
At a time when official development assistance is declining, forest countries are showing what climate leadership looks like.
The TFFF aims to do just that. With a bold capitalization target of US$125 billion, it seeks to provide predictable, annual financing to more than 50 tropical forest countries on a regular basis – covering over one billion hectares of forest. Crucially, it also pledges to direct at least 20 percent of its funding to Indigenous Peoples and local communities, whose role as stewards of the forest is both invaluable and irreplaceable.
Led by a coalition of countries committed to conserving tropical forests, the TFFF is gaining support from sovereign and private financiers alike.
Public-private, Global South-led initiatives like the TFFF are urgently needed in a world where official development assistance is declining and where solutions from those most affected by the climate crisis bring fresh impetus and ideas.
At UNDP, we believe these types of mechanisms are essential. Through our UN-wide Climate Promise initiative, we are working with over 100 countries to turn their national climate pledges (NDCs) into action. The TFFF complements this policy work by offering a vital financial bridge to accelerate NDC implementation – particularly in sustainable land management and forest governance.
"Water regulation, carbon storage, biodiversity – these services underpin our planetary stability and prosperity. The countries protecting them should be supported accordingly."
Importantly, the TFFF will not replace existing forest finance mechanisms like REDD+ and carbon markets, but enhance them, thus increasing the opportunities for tropical forest countries to be rewarded for their emissions reductions, biodiversity and water values. Together with UNEP and FAO, through the UN-REDD Programme, which has provided countries with longstanding support in building the foundations for performance-based forest finance, UNDP is ready to help countries navigate and benefit from this next generation of forest finance instruments.
This is an ambitious departure from traditional, short-term project-based finance. Instead, the TFFF provides long-term, performance-based financing beyond political cycles and economic fluctuations.
As preparations for the next United Nations Climate Change Conference (COP30) advance, UNDP is proud to accompany the TFFF and support its coalition of tropical forest nations in this critical design phase. We are committed to continue supporting the co-design process, support its launch and then, ensure that countries are ready to access the TFFF and reinforce their forest-based sustainability policies.
At a moment when multilateralism is questioned by some, the Global South is stepping up, offering collective, pragmatic and ambitious solutions to preserve our global commons.
Tropical forest countries are not just safeguarding their own future – they are showing the world what true climate leadership looks like.
In addition to sequestering carbon, forests are home to most of the world’s terrestrial biodiversity. And they provide livelihoods for nearly a billion people.
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